November 01, 2024
Tourism

Namibia's tourism sector set for strong growth in 2023

April 21, 2023 3053
Namibia's tourism sector set for strong growth in 2023

Namibia’s tourism sector is expected to grow this year, as recent data shows that foreign arrivals in the last 12 months account for approximately 82% of pre-pandemic levels.

According to research firm Simonis Storm, the sector has also recorded significant increases in occupancy rates across the board.

The firm reported that the number of foreign arrivals averaged 11,431 per month during the first two months of 2023, compared to a monthly average of 5,223 in the first two months of 2022.

"The tourist inflows still look promising and set for further growth in 2023. Foreign arrivals increased by 107% y/y in February 2023. Foreign arrivals in the last 12 months account for about 82% of pre-pandemic levels, implying that most of the recovery has been achieved, whereas regional arrivals have reached about 79% of pre-pandemic levels," said the firm's economist, Theo Klein.

In March 2023, the occupancy rate across nationwide hospitality establishments stood at 40.7%, compared to 31.7% recorded in the prior month and 39.4% in March 2022.

"The occupancy rate averaged 36.5% in 1Q2023, compared to an average of 46.1% in the previous quarter. Nonetheless, this is the best first quarter occupancy rate since the onset of the pandemic, and so the local tourism sector is off to a good start in the new year."

With Namibia's peak tourism season beginning next month, Klein expects occupancy rates to rise in the second and third quarters of the year, following the pre-pandemic trend.

The central area of Namibia recorded the highest occupancy rate in March 2023, at 52.7%, followed by the southern area (41.1%) and the coastal area (39.7%).

In contrast, the northern area had the lowest occupancy rate of 34.6%, almost 20 percentage points below the central area. "

However, there has been a substantial increase in occupancy rates across all areas - except the coastal area - when compared to 12 months ago.

“Quarterly, the most significant contributor to the decline in occupancy rate was the Northern area, which recorded a 32.4% q/q decrease. This decline can be attributed to the high base provided by the festive season."

Klein noted that leisure tourism remains the primary driver of tourism, accounting for 91.9% of visitors in March 2023, while business travelers accounted for 6.3% and conference attendees accounted for 1.8%.

During March 2023, the majority of visitors (39%) came from Germany, Austria, and Switzerland, followed by locals (27%) and South Africans (9%).

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Last modified on Monday, 24 April 2023 12:57
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